ETF Research Center

Forensic Accounting ETF is an exchange-traded fund incorporated in the USA. The Fund's objective is capital appreciation. The Fund, as the name suggests, applies forensic accounting principles to a universe of 500 large-cap stocks in an effort to "red-flag" companies with accounting or performance issues and exclude them from the mix.

FUND BASICS
Category	US Equities
Fund Sponsor	Exchange-Traded Concepts
Website	www.exchangetradedconcepts.com
Inception date	Jan 31, 2013
Assets (mns)	$7
Currency	USD
Expense ratio	152 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Fundamental
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	138
Wgt avg mkt cap (mns)	$58,902
Large cap (>$10bn)	49.9%
Mid cap ($2-10bn)	49.8%
Small cap (<$2bn)	0.3%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	12.6 %
LEGG MASON INC	1.5 %
XPO LOGISTICS INC	1.3 %
MCKESSON CORP	1.3 %
AECOM TECHNOLOGY CORP	1.3 %
SAIC INC	1.3 %
CORELOGIC INC	1.2 %
CARDINAL HEALTH INC	1.2 %
SANTANDER CONSUMER USA HOLDI	1.2 %
AMERISOURCEBERGEN CORP	1.2 %
DAVITA INC	1.2 %

TOP COUNTRY EXPOSURE
	UNITED STATES	132.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
-7.0%	-3.5%	5.0%	--	8.6%

Market Correlations
versus...	Beta	R-squared
S&P500	1.12	66%
MSCI EAFE	1.12	55%
MSCI Emg. Mkts.	0.79	47%

Technical Indicators
Recent close	$33.38
30d moving avg.	$38.49
Annualized volatility	16.7%
Short interest (ETF)	0.0%
Short interest (Underlying)	5.1%
Relative strength (RSI)	30

Liquidity measures
Avg. volume (thou.)	2
Turnover	1.0%
Bid/Ask (% of price)	0.39%
ADV underlying (mns)	$41,448

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the FLAG-Forensic Accounting Long Short ETF ETF based on the alternatives' overlap in portfolio holdings with FLAG. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FLAG

Expense:

152 bp

ALTAR Score™:

8.7%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FLAG
Ticker	Fund Name	Overlap¹ vs FLAG (%)	Expense ratio (bp)	Savings vs FLAG (bp)	ALTAR Score™ (%)	ALTAR vs FLAG (%)
VALQ	American Century STOXX U.S. Quality Value ETF	39.1	29	123	9.6	+0.9
COWZ	Pacer US Cash Cows 100 ETF	37.9	49	103	10.2	+1.5
SYLD	Cambria Shareholder Yield ETF	34.4	59	93	9.7	+1.1
VUSE	Vident Core US Equity Fund	33.8	48	104	8.2	-0.5
SPYB	SPDR S&P 500 Buyback ETF	33.5	35	117	8.7	+0.1
ESGS	Columbia Sustainable U.S. Equity Income ETF	33.5	35	117	9.2	+0.5
FVAL	Fidelity Value Factor ETF	31.3	29	123	8.3	-0.3
ONEY	SPDR Russell 1000 Yield Focus ETF	30.7	20	132	8.9	+0.2
JVAL	JPMorgan U.S. Value Factor ETF	29.5	12	140	9.1	+0.4
VLUE	iShares Edge MSCI USA Value Factor ETF	29.5	15	137	11.4	+2.8
QSY	WisdomTree U.S. LargeCap Value Fund	29.2	38	114	7.5	-1.2
RPV	Invesco S&P 500 Pure Value ETF	28.5	35	117	12.1	+3.4
LSAF	LeaderShares AlphaFactor US Core Equity ETF	27.0	75	77	6.7	-2.0
FTA	First Trust Large Cap Value AlphaDEX Fund	26.7	60	92	9.2	+0.5
ULVM	VictoryShares USAA MSCI USA Value Momentum ETF	26.4	20	132	8.0	-0.7
SPDV	AAM S&P 500 High Dividend Value ETF	25.9	29	123	10.8	+2.1
DTN	WisdomTree U.S. Dividend ex-Financials Fund	25.8	38	114	8.3	-0.4
AFLG	First Trust Active Factor Large Cap ETF	25.7	55	97	6.7	-2.0
QDF	FlexShares Quality Dividend Index Fund	25.7	37	115	7.7	-1.0
SPYD	SPDR S&P 500 High Dividend ETF	25.6	7	145	10.0	+1.4

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2015	2016	2017	2018	2019	2020E	2021E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2019	2020E	2021E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	FLAG-Forensic Accounting Long Short ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

SPECULATIVE

Deeply undervalued but risky. A rating of SPECULATIVE is assigned to ETFs with ALTAR Scores in the top quintile (the top 20%) of their category, indicating exceptional appreciation potential. However, often these are narrowly-focused funds or in industries with structural issues, which may also make them very risky. Nonetheless they may still be useful as part of a well-diversified portfolio.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	14.1	%
Divided by: Fwd. P/BV	1.4	x
Less: Expense ratio	152	bp
Equals: ALTAR Score	8.7	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.66	CATEGORY AVERAGE	1.56

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.